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If the light comes on, then the problem is probably not with the relay... but could be depending on how its wired.
Could be the solenoid... put the car in 4th gear, crawl under there, have an assistant flick the switch, and you listen for a click out of the solenoid.
My money is on the low fluid level though... always the first thing to check. Its probably a good time to change it anyhow, so go ahead and drain the fluid, then re-fill with appropriate oil.
What is appropriate always is a bit controversial... Original spec calls for straight 30wt motor oil. Some folks use gear lube (90wt), some folks say gear lube wrecks overdrives. Other folks use ATF, which is appropriate for a 240 series, and may well be fine too.
My vote... Is for straight 40wt engine oil. And avoid multigrades (such as 10w50). Don't use any additives, and go with the old stuff... dinosaurs that is. Though synthetics might be OK too... I've never tried 'em.
-Matt
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-Matt '70 145s, '65 1800s, '66 122s wagon, others inc. '53 XK120 FHC
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